Frequently Asked Questions
1. What is the estimated timeline for final decision approval on my Equipment finance application?
This varies given time of the year traditional between 2 – 5 days is standard time. This is based on all data being supplied to financier and the above may vary given time of the year. Certain times of the year may take somewhat longer (traditionally end of quarters for example). Some approvals due to complexity may take more time on requests for more data to meet criteria and risk mitigation.
2. What is the estimated timeline for commercial, cash flow or overdraft? Also how long is this application to approval process take?
This can vary given each financier’s internal requirements along with assessment of data supplied. Expect 4 -8 business days on average for either formal approval or requirements/conditions to be outlined. Again, this is providing all data is supplied and may vary if valuations and other data is required. It may vary depending on time of year and financier’s current workflow. Traditionally end of quarters, end of financial year and Christmas period are all busy with cut off times.
3. How long after receiving financier/s document can I expect settlement?
Providing all documents and settlement requirements are completed to financier/s requirement/s this can take up to 4–48 hours under normal conditions.
4. How long until the vendor/s receive cleared funds in their bank accounts?
This can vary from real time clearance to 24 hours traditionally, please contact AE if you need assistance. Most financiers will settle with funds clearing overnight. In some cases, they may be able to pay same day via Real Time transfer, please contact AE prior to settlement if this is required.
5. How much can I borrow against equipment, business loan, cashflow loans, overdrafts and insurance Premium Funding?
Each financier may have a different appetite for funding your business, this will depend again on asset type, internal lending criteria, risk profile and term of proposal/funding.
6. What can I expect in pricing for my equipment finance or business loan?
Pricing will be dependent on asset type, age, type of sale, and lenders internal applied scoring (this may include but not solely be dependent upon scoring agency/ies data)
7. Can I payoff loan earlier?
Yes, you can payoff earlier, please contact us if you would like to do so, we will advise financier and see funds are applied on your behalf.
8. What are the penalties for paying out a loan early?
Our financiers do not provide an exact formula as to how they calculate a payout figure on a loan. The formula used to generate a payout figure will vary from lender to lender. Equipment finance loans being short in nature are designed to be completed start to finish. However, if a loan is to be paid out early it is right to assume that the payout figure generated by the financier will include most of the unpaid interest. In addition, some lenders may charge a break cost which will also be included into the payout figure. This break cost is usually noted within the terms & conditions of the finance contract signed by the client.
9. If a finance application is submitted on my behalf and is unsuccessful will my credit score be impacted.
Each financier has a different approach to checking a credit file of an applicant. Some financiers are able to complete a soft touch as a pre-screen to determine their appetite to assess the deal further. A soft touch does not impact credit scores. However, some lenders do an upfront credit check before they will commence an assessment. Regardless of whether they proceed with an assessment of the proposed loan the preliminary credit check may impact a credit score rating.
10. Does AE Finance Australia / Quantum Business Finance charge upfront fees. How do you charge for professional assistance.
No AE Finance / Quantum Business Finance does not charge upfront fees (Unless otherwise approved by all parties). We offer a free service to assess your profile and submit an application to our financiers on your behalf. If we are successful in having finance approved and the client proceeds with settling the finance, we receive a commission from the financier that is built into the all up pricing. Some financiers allow brokers to complete documentation and we are paid a percentage of document fee for this service upon settlement only. There are additional fees that maybe incurred along the way including the engagement of a third party to complete an inspection or valuation that will come at a cost to the client.
If you have anymore questions feel free to contact our staff Contact us